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HomeMy WebLinkAbout1994-09-21 Council Minutes• AGENDA KENAI CITY COUNCIL - REGULAR MNIBTXN43 BEPTE MER 210, 1994 7900 P.M. KENAI CITY COUNCIL ONMERB 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk are considered to be routine and non-controversial'by the Council and will be approved by one motion. There will be no separate discussion of these items unless a Council Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. H. mazz LED PUBLIC COmENT (10 Minutes.) 1. Tom 8 Rosie Murphy - Book Proposal for History of the City of Kenai. C. P=LIC- RZhRINOB 1. Ordinance No. 1604-94 - Increasing Estimated Revenues and Appropriations by $1,560 in the General F'und.'to. purchase Two Computer Monitors in the Communications Department. 2. ordinance No. 1605-94 - Increasing Estimated Revenues and Appropriations by $13,862.in-the.General Fund au a Result of Receiving Two State Library Grants.. 3. Resolution No. 94-36 - Requesting Municipal. Assistance Funding From the State of Alaska. 4. Resolution No. 94-57 - Certifying That the Municipality Did Suffer Significant Effects During the Program -Base Year from Fisheries Business Activities that Occurred Within the Cook Inlet Fisheries Management Area. 5. Resolution No. 94-58 - Awarding a Lease for the Kenai Municipal Airport Terminal Gift Shop Concession to Mitchell Dobrich for a Monthly Rental Rate of $400.00. • 0 • 6. RoA©lution No. 94-59 --Supporting-the Concept of Improving Cunningham Park and Authorizing the City Administration to Apply for a.Grant, of Up to $500.,000 to Acquire Additional Lands, Upgrade and Enhance the Park, and-toHelp Restore.Recreation Services to Areas Impacted by the Exxon Valdez oil Spill. 7. *1954 Gates of .Ckaace and Contests of Skill Voi ait Application - junior Achievement of Alaska, Inc. 1. Council. on Aging 2. Airport Commission. 3. Harbor Commission 4. Library commission 5. Parks & Recreation Commission 6. Planning & Zoning Commission 7. Miscellaneous Commissions and Committees Be i. *Regular Meeting of September 7, 1994. !. COR.BDBPOND Q. OL_�.�� �B 1. Discussion - Proposed Assisted Living Complex,, ].. Bills to be Paid, Hills to be Ratified, 2. Purchase orders Exceeding $1,000 3. eOrdinsance.No. 3606-94 - Increasing Estimated Revenues and Appropriations.by $39-500 in a New Capital Project Fund for an Environmental Site As' esszament of Lots 33 and:14, Cook Inlet Industrial Air Park. 4. *0V41naU00 No. 2607-44 - Amending 'KNC 7.22.060 .to . Specify that Short -Tema U.S.. Treasury. Notes and the .Alaska Municipal League Investment Pool,are Li id Investments. .2 5 . *Ordinance No. 1608-94 - Amending KMC 7 ,12.040 by creatinga Mechanism for Estimating Motel/Motel Room Tax for operators Failing to File Returns or Provide or Keep Accurate Records, 6. DisOUNrion - Kenai Municipal Airport Terminal Bar. 7. DisouNN1034 Prioritization and. Ratification _cif Goals a. Objectives List. 1. Mayor 2. City Manager 3. Attorney 4. City Clerk. 5. Finance Director 6. Public works Director 7. Airport Manager r" L _.� J. DI8CtT88IO�t 1. Citizens (five. minutes) 2. K. M RENAL CITY COUNCIL - REGULAR MEETING BEPTEMBER 21, 1994 7:00 P.M. KENAI CITY COUNCIL CSAMBERS MAYOR .TORT J 0 WXLLIAM8, BREBIDXNG ZZIN as ,ChLb IQ QR� Mayor Williams called the meeting to order at approximately 7:15 p.m. in the Council Chambers in the Kenai City Hall Building A-1. =Rot -4r M&NOIA. Mayor Williams led those assembled in the Pledge of Allegiance. A-20 Roll was taken by the City Clerk. Present were: Bookey, Swarner, Monfor, Measles, Bannock, Smalley and Williams. A-5. Mayor Williams requested the following changes to the agenda: REMOVE: 2-1, VMBO '!A 80hedn1ed to be Hoard - Tom and Rosie Murphy, ADD: 8-20, Persons 80heduled to be Heard - Joel Kopp/Green Star Program. NOTION$ Councilman Smalley MOVED for approval of the amended agenda and requested UNANIMOUS CONSENT. There were no objections. SO ORDERED. umn Mayor Williams stated he had no changes to the consent agenda. MOTION: Councilman Smalley MOVED for approval of the consent agenda as presented and requested UNANIMOUS CONBIM, Councilwoman Swarner 8ECOND$D the motion. There were no objections. SO OR Nil. . 8-1. Tom i Rosie Murphy - Book Proposal for History of the IS City of Kenai. Removed from the agenda, KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 2 B-2. Joel Kopp - Kenai Peninsula Green Star Program. This item was added to the agenda at the beginning of the meeting at the request of Mayor Williams. Kopp introduced himself -as the` Program Coordinator of the Central Peninsula Green Star Program. Kopp distributed pamphlets and attachments for Council to review. Kopp stated the program was created through the Kenai, Soldotna and North Peninsula Chambers of Commerce. They modeled the program after the original program began in Anchorage in 1990. The goal of the program is to establish the central peninsula area as a model community in promoting positive ecological attitudes to encourage compatible business and environmental objectives. The program has taken steps to preserve the Kenai River. It is a volunteer program. The program is designed to prevent pollution and encourage energy efficiency. Now there are 180 organizations in Alaska who have enrolled.. -,A do national charter has been established. Other states involved are Hawaii and Wisconsin. Senator Stevens has promoted the program through the Clean Water Act. Kenai is the first area outside 2of Anchorage to get involved in the program. Fifteen organizations have joined the central peninsula program since it was launched last month. Kopp reported both the City of Soldotna and the Kenai Peninsula Borough have enrolled in the program. A Green Star award is given upon the completion of applying twelve of 18 program standards and by attending workshops, etc. Kopp stated the enrollment fee for a governmental agency is $50.00. Kopp stated a coordinator needs to be assigned, but suggested each department have a coordinator. NOTION: Councilman Smalley NOVBD that the City join the program and be proactive and get involved as much as it can. Councilwoman Swarner SECONDED the motion and requested MUNINOVe CONaMe There were no objections. BO ORDnED. Williams requested the City Manager appoint a coordinator. 0 8 • 10 0 KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 3 C-1. ordiriaaae No. 1604"94 - Increasing Estimated Revenues and Appropriations by.$IFS60 in the General Fund to purchase Two Computer Monitors in the Communications Department, MOTION: Councilman Smalley X0V8D for adoption of Ordinance No. 1604--94 and Councilman Measles 82CONDRD the motion. There were no public or council. comments. VOTES Bookey: Yes Swarner: Yes Monfor: Yes Measles: Yess Bannock: Yes Smalley: Yes Williams: Yes. MOTION PASOND VIUMMOUBLY. C•a. ordiROM06 No. 1603-94.- Increasing Estimated'Revenues and Appropriations.by $13,862 in the General Fund as a Result of.Receiving Two State Library Grants. NOTION: Councilwoman Monfor MOVED for adoption of Ordinance No. 1605-94 and Councilwoman Swarner BECONDRD the motion. There were no public or council comments. VOTE: Bookey: Yes Measles:. Yess Williams:'Yes Swarner: Yes Bannock: Yes MOTION PA88ED MMUNOUBWO Monfor: Yes Smalley: Yes 0-3. Resolution Ito» 94-36-.Requessting.Municipal Assistance Funding From the State of Alaska. • KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 211 1994 PAGE 4 NOTIONS Councilman Measles MOVED for adoption of Resolution No. 94-56'and requested UNANIMOUS CONSENT. Councilwoman Swarner SECONDED the motion. There were no public or council comments. VOTES There were no objections to the motion. BO ORDERED, C-4. Resolution No. 94-S7 - Certifying That the Municipality Did Suffer Significant Effects During the Program Base Year from Fisheries Business Activities that Occurred Within the Cook Inlet Fisheries Management Area. MOTIoN: Councilman Bookey MOVED for approval of Resolution No. 94-57 and Councilwoman Swarner SECONDED the motion and requested UNRNZKO CONSENT. There were no public or council comments. VOTES There were no objections. SO ORDERED. Resolution No. 94-58 - Awarding a Lease for the Kenai Municipal Airport Terminal Gift Shop Concession to Mitchell Dobrich for a Monthly Rental Rate of $400.000 MOTIONS Councilman Measles MOVED for adoption of Resolution No. 94-58 and Councilman Smalley SECONDED the motion. There were no public comments. Councilwoman Swarner asked what the previous rental rate was. Acting City Manager Howard.stated it:.was $500 per month for eight months. Then $50 per month through April. This bid would be $600 per month annually. Councilman Smalls asked if there would be an closure time Y y im as there had been in the past. Airport Manager Ernst stated he LJ 11 • KENAI CITY COUNCIL MEETING MINUTES ISEPTEMBER 21, 1994 PAGE 5 discussed this with the bidder/lessee and he indicated he will keep the business open twelve months out. of the year. Bookey stated he did not .object to the amount. However, he did not want to renegotiate in aanuary or February as was done in the Past. . Ernst stated the bidder/lessee stated he felt comfortable With the items he has. for. sale. and.with the proceedo he derives from sales, He.does not intend to come back to renegotiate. Councilman Bannock asked if the new lease discussed how many hours a week and day the business was required to be open.. Ernst stated the agreement spoke to that and read Article 4, Section 5 to council. Ernst added the shop is required to be open normal working hours, i.e. 9:00 a.m.-5:00 p.m., five or six days a week. VOTZ t There were no objections. 00 OR02=00 Resoivtioa Ito. 94-59 Supporting the Concept of improving Cunningham, Park and Authorizing the City Administration to Apply for a Grant.of Up�to.$500,000: to acquire Additional Lands, Upgrade and Enhance the :Park, and.to Help Restore Recreation Services to Areas Impacted by the Exxon Valdez ail Spill. NOTIONS Councilman Smalley X0VZD for approval of Resolution No. 94-59 and Councilman-Bookey 8ECONDED the motion. �i�tblfc c6nngnu Larstta broaden - 1602 Barabara Drive, Kenai.. Breeden stated she ha-6 a direct view of. Cunningham" Park from her property. Breeden added she was partly in favor of the.concept but in many ways was completely against it. Breeden questioned the wording.of the resolution.wherein.it stated the funding was to restore recreational service in areas impacted by the Exxon Valdez oil spill. 'Breeden stated she believed that was stretching the imagination to.the limit. Breeden stated shevas on the Kenai River Special Management Area Board and was aware the River did not suffer from the oil spill. The real damage was from the.people using the area during fishing. season. She has observed.from 60-90 people at the Park.during • 0 • KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 211 1994 PAGE 6 the days. Guides are using the area. People are taking peat.. from the river bank. Breeden stated she would like the Park to be closed to boat launching as that activity damages the banks,. etc. Breeden added she did not believe the Parr was a place for commercial users to use. If additional lands are acquired,,that will impact the River more. Breeden stated what is there needs to be cared for as it is a disgrace. Before looking at how enlarging the park will impact the River, care of what is already there is needed first. Williams referred to a drawing Acting Public Works Director La Shot had available. Williams stated he recognized the problem with the boat ramp and added it could be eliminated completely. Williams stated the ramp would be good for drift fisherman. Williams said the plan calls for entry kiosks with ladders dawn the bank to protect it; improved and additional parking space; and, enhancement of the existing playground. Much of the grant funding would be spent to acquire the additional adjacent property. Williams stated money was available in three areas which included the Cook Inlet area. Funding is available to enhance areas that can affect the fishery and as a result of the spill. Smalley stated he believed if the park was to be closed to boats, it needed to be closed to all boats. Williams agreed. Williams added if the boat ramp was eliminated, it may never be opened. again to boats. Measles stated he believed the boat ramp should be eliminated also. Measles added if the City was going to operate a user fee ramp downstream, this boat ramp should be closed. Williams agreed it is a hazardous area for a boat ramp. Monfor asked why the resolution included the wording regarding "impacted by the oil spill." Williams stated because the funding comes from the Exxon Spill Trustee Council monies. Jim Sutler - Sutler reported the ability of the Trustee Council and abilities of the different divisions distributing the money are strictly limited by the settlement agreement between Alaska and the federal government. The general concept is to assist. with the recovery from the spill. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 7 Butler went on to say the Exxon monies are not the only monies available. There is funding available through DOT and the federal government. There are funds available targeting the Kenai River. MOTION TO ANEW: Councilman Measles MOVED to amend Resolution No. 94-5.4 as follows (added words are underlined, deleted words in brackets and capitalized): 1. In the heading, the third sentence, "..,authorizing the city administration to apply for any _&Uil_a, ble [A] grant of up to $500,000.00 to acquire additional lands(,] and upgrade and enhance the parks [TO HELP RESTORE RECREATION SERVICES TO AREAS IMPACTED BY THE EXXON VALDEZ OIL SPILL.]" Councilman Smalley SECONDED the motion. Measles stated he agreed with Breeden that the amount of things trying to be done because of the oil spill stretches the. imagination. Measles offered additional amendments (added.words.are underlined, deleted words in brackets and capitalized) 2. The second whereas, "...borne by the ESTATE PARKS RECREATION PROJECT FUNDS] grant; and 3. The "Now, Therefore...," third line, '$...authorizes the City Administration to apply (FOR A STATE PARKS RECREATION GRANT] for anv_Mi1A;,�,,g__gXant§ to pay for land acquisition, and facilities upgrade and enhancement." Councilman Smalley approved the additional amendments after already seconding the motion. VOTE ON THE : Councilwoman Swarner requested VNANZM008 CONSENT. There were no. objections. 80 ORDERED. Breeden stated she understood there was an ordinance proposed.by Assemblyman Drathman to zone the Kenai River. This may.affect the City of Kenai. Williams reported.he had met with Drathman'as well as other assemblypersons. They are. requesting the'city to . join them in the effort to control the river system. That.will be up to the council after reviewing the proposed ordinance. • • KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 8 VOTS ON THE MAIN NOTION AB AUMBID s There,were no objections to the main motion as amended. 80 ORDERED. C-7 1994 Games of Chance and Contests of Skill permit Application - Junior Achievement of Alaska, lna. Approved by consent agenda. P BREAK= 8800 P.M. BACK To ORDER: 8:13 B.M. D►-#,. Council on Aging Councilwoman Swarner reported the unapproved minutes of.,the Council's last meeting were included in the pacsket. At the last seeting.they discussed the use of adjoining property to the Senior Center and Congregate Housing on which..to buhd an - assisted living complex. Swarner stated the.Council.said they had no objection to the use of property in front of the Center. Williams stated he spoke with Grasso on the telephone and directed him to call Acting City Manager Howard.to find.out what property was acceptable. Grasso had stated to him his concern. that -additional cost would be involved for- installation'' of utilities, etc. if the Daubenspeck property could be used. Referring to the information included in the packet at. Item G-1 (copies of letter and resolution transferring the Daubenspeck property to the City), Williams requested Attorney Graves define "public use.l' Williams suggested one could say this project would be private use because it was developed by.privete money, however it will be used by the public because it will be public housing. Graves stated what Williams was proposing would not meet the restrictions of. the resolution as public use. Williams suggested if Council felt comfortable vith leasing the. property in front of the Senior Center for this purpose, they should advise Graves to go ahead with.it.. Williams suggested a • r�L KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 9 caveat be included in the lease agreement that Council would have some say as to the design of the facility. Williams stated it would be a single -level facility. Swarner stated the Council on Aging discussed their concerns that the building should be the same type of architecture, such as the siding, etc. Williams stated the builder may have to spend more money on the design, but it would be more aesthetically acceptable. Councilwoman Monfor stated she was not sure she was in favor of the use of the property in front of the Senior Center. Monfor added she felt there were other areas in the core area of town that could be used. She will want to review the drawing and plans. If the City builds an additional 20 units to the congregate housing facility, along with the assisted living complex, that area may be too congested. Monfor stated she did not know if that would be the best use of the land. Williams stated they are centering all in one area. If that happens, there are benefits to the Senior Center and others visiting the facility. Monfor stated again she would like to see the plans. Monfor asked who owned the old football field property. Acting City. Manager Howard stated the FAA and the City but grant monies were received to develop it into parks. Williams stated different areas (the developer). Howard stated to Grasso when he called her. D-2. Airport comission were needed to review with Grasso she would relate the conversation, Councilman Measles reported there was no meeting. A memorandum was included in the packet to explain the situation. D-3. Harbor commission Councilman Bookey reported a meeting was held and the minutes were included in the packet. They discussed the Cone property proposal. The Commission seemed to be in favor of the plan. They also discussed steps to take to maintain a corridor between the River's buoys. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 10 D-4. Library Comsission Councilwoman Monfor reported the minutesfroomthe CCoom issssion's last meeting were included in the packet. Also Library's monthly report was included. Monfor informed Council' it was Banned Book week and reminded Council at 1f theIntellectual Freedom workshop to be held on October , D-5. Parka i Recreatioa Counisaion Councilman Bannock reported ther�diateitwo sets to theminutes last included in the packet. one imm y prior council meeting and for the regular meeting. Director McGillivray pointed out some correcrieons art�tthe softballmade fields the minutes at the next meeting in regard to and Cunningham Park. McGillivray he suggested to Bob Frates they request the flowers be started earlier in the spring in order is�ihave n altsoeflowers discussed blooming earlier in the summer. Th the Cone property proposal:b esubmitted commission d enhance application for funding also Cunningham Park. McGillivray reported the National Parke meeting will betheldanext week at which the State Association will be presenting y workshops. McGillivray reported commissioner Hultberg approveindicated an interest to attend. The Code states travel for commissioners. McGillivray requested Council approval for Hultberg to travel.to Anchorage to attend the two-day workshops. McGillivray stated costs would include $65.00-for registration and one day's per diem. NOTIONS Councilwoman Monfor (LOVED for Commissioner Hultberg be allowed to go and Councilman Smalley 8$CONDED the motion. There were'.no objections. 00 ORDERED. McGillivray reported the tent camping area as been secured for the winter with a tree, post and chain Williams thanked Public Works, the Street and Airport Departments for working together with.Parks & Recreation to improve the ballfield base lines. City equipment was used and the work was done in-house. Cost of the work was under.budget. • KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE it n'6 • TiaaAing h $omiaq COM1881031 Councilman Smalley reported a co were included in the copy °f the last meeting minutes discussed were a packet. Some of the items the Commission approval of a bed and breakfast on Juliussen and the proposed resolution for the Cunningham park rant. indicated a copy of the Code enforcement list was included packet. luded in the Williams referred to the enforcement list and noted th vehicles seem to be a junk what happens after thetaou t worse better. Williams asked Of the Code. Attorney Graves stated if he foundii violation and the property is not cleared, there will be continuing citations. It will be ongoing. Every day could be a g violation. separate Bannock questioned why that argument Glen Court. It was noted there were no does not apply to 118 Wooded Property. Williams added it was a legitim to a quevehistion,, on that was no answer. on, but there b-7• miscellaneous CoUSirrtaaa and Comittees a • City Vid". - Councilwoman Monfor reported s Councilman Smalley met with Amy Erikeson vantage Producthe ions) and they reviewed the draft video. ions) video. They 'asked her to put more shots revamped of the peripheral airport businesses in the shots CERA Helicottand Civil Air Patrol ban -gar, etc.). p ers, They removed the historical information which was at -the be it would better depict and promote beginning Btrthe video. They felt that information there• y in the area without Williams stated he had a request from a citizen who w interested in the city creating a similar, video which as businesses in the city. Williams su ch highlighted footage know.if ould be used from t11e present lied the a lot of the same did not the City would have the right toiusi�ms stated he e the footage. Graves stated he recollected the City was to have t all the footage and the out -takes as well he rights to would talk with Me. Brickeson. • Williams stated he b. Visitors i Cultural Cater _ noted letter included in the packet from the KVCC which Monfor the reported the le • 6" C7 KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 211 1994 PAGE 12 number of visitors received through the year, etc. Monfor added the Center will be open through September on weekends and four hours on Saturdays beginning October through December. Williams referred back to the discussion regarding the video. Williams stated Mayor Gilman was now in Charlotte, North Carolina. in regard to the MIDREX proposal where he and others are compiling information to forward to Japan. Williams added he would like to send a copy of the city video to Charlotte and to Japan. ° Smalley stated when they met with Erikson, he and Monfor explained to her they were uncomfortable that she might be feeling rushed to get the video done. Smalley reminded her there was a timeframe included in the video proposal of October 1. Monfor added Eriksson stated she would be done with the video by the October 1 deadline, but would not have a copy of the.finished video for Council to review tonight as Williams had requested. Williams stated he could express a copy of the video on October 2. c. Historic District Board - Williams reported the Board met on September 6. The minutes were included in the packet. .. d. Beautification committee - Swarner reported the Committee met on September 13 and the unapproved minutes were included in the packet. Swarner reminded Council of the Healthy Communities luncheon to be held on Friday at 11:00 a.m. ITBM 22 1MI-MRT$8 X-1. Regular Meeting of September 7, 1994. Approved by consent agenda. None. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 13 T ✓1r_ t L. 1 1 ____'j.-_ _ 0-1. Discussion - Proposed Assisted Living Complex. Discussed at Item D-1. ITF.bs 8: NMW 9-ye us8B Bills to be Paid, Bills to be Ratified MOTIONi Councilman Smalley MOVED to pay the bills and Councilman Measles BECONDED the motion and requested UNANXXOUB CONSENT. There were no objections. s0 ORDERED. "N-Z. Purchase orders Exceeding $10000 MOTION: Councilman Measles MOVED to approve the purchase orders exceeding $1,000 and Councilman Smalley BECONDED the motion. There were no objections. BO ORDERED. H-3., Ordinance No. 1606-94 - Increasing Estimated Revenues and Appropriations by $39,500 in a New Capital Project Fund for an Environmental Site Assessment of Lots 13 and 14, Cook Inlet Industrial Air Park. Approved by consent agenda. B-4. Ordinance No. 1607-94 - Amending KMC 7.22.060 to Specify that Short -Term U.S. Treasury Notes and the Alaska Municipal League Investment Pool are Liquid Investments. Approved by consent agenda. N-5. ordinance No. 1606-94 - Amending KMC 7.12.040 by Creating a Mechanism for Estimating Hotel/Motel Room Tax for Operators Failing to File Returns or Provide.or Keep Accurate Records. Approved pp by consent n ent agenda. KENAI CITY COUNCIL MEETING MINUTES SEPTE14BER 21, 1994 PAGE 14 R-6. Disouseion - Kenai Municipal Airport Terminal Bar. Airport Manager Ernst referred to the memorandum included in the. packet. The memorandum reported at the 10:00 a.m. bid opening . time, there were no bids received. At 1:57 p.m.,.Louie Schilling delivered a bid to City Hall. Schilling stated he thought the bid opening time was for 2:00 p.m. Because of the missed bid opening time, the bid was not opened. Ernst reported Acting City Manager Howard had the bid envelope with her (at the council meeting). Ernst added he would defer to Council to decide what to do. Councilman Measles suggested opening the envelope. Since there were no bids received, Council could negotiate with anyone that comes forward. Ernst stated he spoke with Attorney Graves. He, suggested the envelope not be opened and Council negotiate the lease price. A short discussion followed. 0 KOTIONt Councilman Measles MOVED to open the bid. Councilwoman Monfor SECONDED the motion. Councilman Smalley stated the bid that was turned in was not a bid. At this time it is a document. Measles stated it would be treated as an offer. Graves added it would not be accepting the bid, but a means to enter into negotiations with Louie Schilling. Smalley suggested it appropriate to ask Schilling if he wanted the envelope opened or if he wanted the envelope back. Schilling requested the envelope be opened. Bannock suggested Council offer an extension of the present lease, keeping the lease price at the same level. Measles stated Council needed to know what the offer was. Graves stated the DBE rules did not allow for an extension of the lease period. The City is required to put the lease out for bid. if there are no bids, then a lease price can be negotiated. VOTE There were no objections to the motion. so ORDERED. Acting City Manager Howard reported to Council the lessee is now paying $11750 a month and the City pays for the utilities. KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 211 1994 PAGE 15 Howard opened the envelope and reported the envelope contained an offer of $750 a month ( lease price) and $2, 000 in cash as a bid deposit. Williams restated the offer was for $750 a month lease payment for a five-year lease period. Williams asked Schilling how he arrived at the $750 offer. Schilling stated he considered the restaurant lease price ($500/month) and the gift shop lease price ($400/month). Both have better locations. Schilling added he felt his offer to be fair and honest. He would take that offer or walk away. He would still be paying more than anyone else there. Bookey stated h come into line. be in favor of e has said all along the airport leases needed to The airport can only support so much. He would accepting the offer. Williams asked what equipment, etc. was owned by the City. Ernst answered the bar was turned over as a working bar. If the Schilling lease was not renewed, Schilling would have to leave the bar in working order. Monfor stated Schilling had paid over $105,000 in lease payments.' When he leased the bar there was not a great deal of interest in it. No one has called and asked when the lease would end in order to be able to bid on it. Monfor added she felt as Bookey did, the leases at the airport are now aligned. She would accept the lease offer. Councilwoman Monfor MOVED to accept Louie Schilling lease payment offer of $750 a month for the airport bar for a five-year period. Councilman Smalley SECONDED the motion. Williams stated he felt the rental rate should be more as there.. was lots of floor space included. Measles stated floor space did not have a lot to do with it. Only so many people will go into the lounge. There's a limited source of revenue. Williams suggested the space could be used for something else. Measles stated he believed a bar is needed in the airport, just as a gift shop and restaurant are needed. They should be available for the traveling public. If nobody False wants to run KENAI CITY COUNCIL MEETING MINUTES SE PTEMBER 211 1994 PAGE 16 he believed the City should do the bar, gift shop and restaurant, city to run them, but it themselves* He really does not o be cleoseed* also does not want the businesses to of a rental stated he was struggling with the sinessamount was ad the Bannock sta Bannock was concerned if � rate offered• cone back to Council and request a lower rate. lessors would a Howard stated asked if the airlines were on t ted his concern that the Bannockerties• they had three-year feat be seen as worthless prop airport properties might disagree with Bannock. Smalley stated he did not necessarily lease. not dealing with a reduction ofgadnf�g. Smalley added They were It is the establish stated This is a new lease• he believed this is what the market would allow - he would support the offer. the City.was fortunate to get onelate ket� Bookey stated he felt but it is what This is the market. The offer is low, will support * Monf or called for the question • ed the $2��0� cash bid deposit to Schilling• Howard return VOTL: Monfor: Yes Bookey: Yes Swarner: Yes Smalley: Yes Measles: Yes Bannock: Yes Williams: Yes MOTION VASSLD IMMIKOVeLY. of Goals & isoussion - Prioritization and Ratification S-7• Objectives List. discussed. Council will 8et a Work meeting Item was not d 1994 council discuss the topic at the October 5. I —le mayor ssted ast - Williams rent a. Governor's Matabing Grant Brogs Council direct Administration to complete the necessary g • KENAI CITY COUNCIL MEETING MINUTES SEPTEMBER 21, 1994 PAGE 17 application for the Governor's Matching Grant for use toward the City's water quality developpent program. MOTION$ Councilman Smalley MOVED for City Administration to draft the proper documents. Councilman Measles SECONDED the motion. There were no objections. 90 ORDERED. Williams requested the documents before Council at the October 5, 1994 meeting. Williams also stated Council needs to develop their Capital Improvement Projects list. Smalley requested total cost information to develop a water well. The amounts should include any leftover monies from sewer and water projects. Council requested the information for the October 5, 1994 meeting. b. Rousing Projocts - Williams reported he not with the Director of the Farmers Home Administration and discussed the' grant program they have available which residents of Thompson Park can apply for to help pay for their hook-ups to the new sewer and water system. Williams also learned FHA has monies available for new homes. Williams added the director urged the securing of the Inlet Woods property. c. Ratification of Work Session DireotiWst Williams requested Council ratification of their requests made during the work session prior to the council meeting: 1. Removal of Linda Bonewell from the.Airport Commission. 2. Move Wm. Toppa from Airport Commission to Planning & Zoning Commission. 3. Appoint Elsie Seaman to the Beautification Committee. 4. Send other correspondence as discussed during the work session. MOTION$ Councilman Measles MOVED to approve and ratify Council's directives made during the work session as stated. Councilman Bookey SECONDED the motion. There were no objections.. 00 ORDERED. c. Kenai Development Corporation Stook - Williams reported P P p. he had a discussion with a local accountant who suggested the f • XENAI CITY COUNCIL NESTING MINUTES 8$PTffiQBER 21, 1994 PAGE 18 Cityls stock in the Development'Corporation was worth a iot of money. Finance Director Brown stated he has inquired and.. investigated the stock. several tinges over the years and has found: it has no value. Brown added at the time,the Developuaent Corporation was started the City,was ableto put money into such a program. However, now it cannot, t-20 city manager Acting City Manager Howard reported City Manager Manninen was out of town to attend an =CiKA conference in Chicago, followed by vacation and would be back in Kenai the evening.of September 28. He will be attending an EDD meeting in Seward on the 29th and back in the office on the 30th. i-3. AttOrll*y No report. Williams referred back to his report. ,.Williams.riaquested Council to review the proposed Borough ordinance includedih the packet regarding conditional use permit approval criteria for the Kenai River. Williams stated he would like a resolution of support from the City and a similar ordinance after th& Assembly makes their determination of the ordinance. Williams requested Council and Administration study the matter and find out the advantages and disadvantages. 1-40 City clerk Clerk Freas reported to Council absentee voting forethe October 4 election was available in her office.. Freas also -noted her memorandum included in the packet regarding a telephone discussion she had about the Kenai.Health Clinic. Freas added from her conversation she learned there is discussion at the State level about the possible relacation.of the Clinic. 1-5 Finance Director No report. Publio works Director Acting Director La Shot reported the following: a. Direct or Kornelie had to leave town due to his fathers health. • Am KENAI.CITY COUNCIL MEETING MINUTES SEPTSWER 21, 1994 PAGE 19 be An exploratory.well was started:east;of town.. The water quantity looked.encouraging,,however the color, at this. level, is about the` same as well No.. 2. They will be drilling lower and hope the color will improve. This well is about halfway between the two wellhouses. La shot added this well is in- an artesian aquifer'. Theytested wells on Angler Drive . If this water is found to be acceptable, a pipeline will not have to be placed. -if it needs to be treated, they may be able to run lines to them -treatment plant. 1-7. Airport Hanagor No report. J-3,. Citiiseus None. J�Z• Council Bookoy - Nothings awarner will be attending the.Healthy Communities workshop on Saturday* Nonfor - Stated she wan- pleased . with the compass - rose on the taxiway with "Kenai" -incorporated -into -it.. Monfor.added.she will be attending the stealthy Communities luncheon on Friday. Xaasies - Nothing. eaAnaok - Nothing. gim loy -- Reminded everyone the dedication of the third Habitat fog Humanities house :was stcheduled for Sunday, October 2. The house is off Colonial Drive in 5oldotna. The meeting adjourned at approximately,9:;26 pen Minutes transcribed submitted by: